Social Return on Investment (SROI)
Estimated social value generated for every dollar of organisational spend
What is Social Return on Investment (SROI)?
Social return on investment is a ratio comparing the monetised social value a programme creates with the cost of delivering it. It shows how much social benefit each unit of currency invested produces.
It helps charities and funders explain and compare the value of their work in a common language.
How this KPI is measured
- Function
- Operations & Supply Chain
- Sub-function
- Impact Measurement
- Industry
- Not-for-Profit / Charity
- Type
- Lagging
- Impact
- Quality
- Unit
- x
- Measurement frequency
- Annual
- Formula
- Total social value created (monetised) / Total investment (cost of delivery)
How to calculate it
Divide the total monetised social value created by the total investment.
For example, if a programme creates 1,500,000 of social value and costs 500,000, SROI is 3, meaning 3 of value for each 1 invested.
The main challenge is valuing outcomes fairly. Use recognised methods, be transparent about assumptions and avoid claiming more than the evidence supports.
Where it is used
Demonstrating value
Show funders the return.
Comparing programmes
Choose where to invest.
Improving design
Understand what creates value.
How to improve it
Tips and common mistakes
- Treat the ratio as a guide, not a precise number.
- Compare only studies that use similar methods.
- Always show your assumptions.
More Operations & Supply Chain kpi library
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